In what could be the latest consolidation in the cryptosphere, Nexo begins the process to acquire troubled Vauld.
According to reports from the block, Nexo said it had signed an indicative term sheet with Vauld. It also includes a plan to completely acquire the Singaporean firm.
The London-based firm did not name a price for the potential takeover. It also did not say when the deal will be completed.
Nexo will carry out its due diligence within a 60-day period.
Depending on the result of its exploration period, Nexo will refinance or restructure Vauld to further its presence in the Asian market.
According to Nexo Co-founder Antoni Trenchev, its interest in the Singaporean lender is because of its huge Asian market.
Speaking on the potential deal, Vauld’s CEO Darshan Bathija believes operating under the Nexo umbrella puts it in a position of strength.
Although either party is yet to give details as per the potential takeover, the deal will offer huge relief to Vauld users whose funds are trapped.
Recall that Vauld abruptly suspended withdrawals, trading, and deposit transactions on its platform on Monday. The decision was due to the combination of the volatile market conditions and the exposure of key partners.
According to the CEO, the halt will afford Vauld the opportunity to explore and ascertain intended restructuring options. Vauld will not process any transaction until a workable solution is discovered. He further pleaded with users to understand the intention behind the suspensions on its platform.
Nexo’s consolidation plans
Nexo had, last month, offered to rescue struggling Celsius following the latter’s suspension of withdrawals amid “extreme market conditions.”
Ahead of its planned consolidation of troubled crypto firms, the crypto lender, in June contracted Citibank to advise it on its consolidation quest.
Nexo believes the crypto space is going into a stage of mass consolidation. It also believes its financial strengths put it in a position to support ailing firms and redeem trust in the system.
Citibank will advise Nexo on its acquisitions and restructuring plans for the firms it is interested in.